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CH 12 Marketing Channels
by Robin Modgil
Vocabulary of chapter 12
moving goods and services from producers to customers is the second marketing mix variable and an important marketing concern. A
also called a
in an organized system of marketing institutions and their interrelationships that enhances the physical flow and ownership of goods and services from producer to consumer or business user.
is the process of coordination the flow of information goods, and services among members of the distribution channel.
Supply chain management
is the control of the activities of purchasing processing, and delivery through which raw materials are transformed in products and made available to final consumers.
is a broad range of activities aimed at efficient movement of finished goods from the end of production line the consumer.
Electronic store fronts
are online stores where customers can view and order merchandise much like window shopping at traditional retail establishments.
is a marketing channel that moves goods directly from a producer to the business purchaser or ultimate user.
is a network that moves products to a firms target market through more than one marketing channel.
is the distribution of a product through all available channels.
is the distribution of a product through a limited number of channels.
is the distribution of product through a single wholesaler or retailer in a specific geographic region.
are dominant and controlling member of a marketing channel.
Vertical marketing systems
(VMS) are planned channel systems designed to improve distribution efficiency and cost effectiveness by integration various functions throughout the distribution chain.
Corporate marketing system
VMS in which a single owner operates the entire marketing channel.
Administered marketing system
VMS that achieves channel coordination when a dominant channel member exercises its power.
Contractual marketing system
VMS that coordinates channel activities through formal agreements among participants.
produced for sale in one market and then diverted to another market.
Marketing distribution channels-
systems of marketing institutions that enhance the physical flow of goods and services- ownership title, 7 from producer to consumer or business owner.
- direct selling, selling through intermediaries, dual distribution, and reverse channels. These
are facilitating the exchange process, sorting, standardizing exchange processes, and facilitating searches by buyers and sellers.
channel strategy decisions-
selecting a marketing channel and determining distribution intensity- based on market factors, product factors, organizational factors, or competitive factors.
- actual process of coordinating the flow of information, goods, and services amoung members of the marketing channel.
Categories of distribution intensity
- distributes a product through all available channels in a trade area. Selective distribution chooses a limited number of retailers in a market area. Exclusive distribution grants exclusive rights to a wholesaler or retailer to sell a manufactures products.
- dominant member of the marketing channel, which provides the necessary leadership
- Horizontal conflict results from disagreements amoung channel members at the same level. Vertical conflict occurs when channel members at different levels disagree. The grey market causes conflict because it involves competition in the Canadian market of brands produced by overseas affiliates, which are lower priced than the same goods manufactured in Canada.
- planned channel systems designed to improve the effectiveness of distribution, including efficiency and cost. The three major types are corporate, administered, and contractual.
- occurs when managers of individual functions try to reduce costs but create less than optimal results
Chapter 12 marketing channels
There are 4 types of marketing channels
1. Direct selling
2. Selling through intermediaries
3. Dual distribution
4. Reverse channels
Each channel performs four functions
1. Facilitating the exchange process
3. Standardizing exchange processes
4. Facilitating searches by buyers and sellers
Electronic storefront: Online store where customers can view and order merchandise
Direct channel: Marketing channel that moves goods directly from a producer to the business purchaser or ultimate user.
RFID: is a tiny chip with identification information that can be read from a distance by a scanner using radio waves.
Grey goods are produced for sale in one market and then diverted to another market
A vertical marketing system is a planned channel system made to improve distribution efficiency and cost effectiveness by integrating various functions throughout the distribution chain.VMS consists of forward integration and backward integration
There are 3 alternative marketing channels, Consumer goods, business goods and services.
A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of
to the point of
and, as such, which consists of all the
and all the
activities in the marketing process. A marketing channel is a useful tool for management.
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